A business firm is synonymous with an enterprise. While it may be owned by management or multiple individuals, those characteristics are not defining factors of what constitutes a business firm. The term “firm” is often used interchangeably with “company” and refers to an organization that engages in commercial activities with the goal of generating profits.

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A Business Firm Is

Question 37

Multiple Choice

A business firm is

A) equivalent to management ownership.
B) also called an enterprise.
C) a company owned by two or more individuals.
D) an organization run by the government.
E) a business conducted at a single location only.

Correct Answer: